Common fixed costs that are allocated between departments are generally

Name: Common fixed costs that are allocated between departments are generally
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Question

Quizplus · Accepted Answer

Common fixed costs are not directly attributable to any one department, making them irrelevant to the decision of whether to drop a department. Allocating common fixed costs to departments is done for the purpose of assigning a fair share of the overall costs to each department, but it does not affect the decision to maintain or drop a department.

Common Fixed Costs That Are Allocated Between Departments Are Generally